It’s becoming increasingly clear that blockchain technology is the future of digitizing supply chains and unifying systems within and across enterprises to enable absolute visibility. By bridging analogue gaps along the way, this technology stands poised to revolutionize how businesses interact with their customers.
Put simply, even though technology has advanced, supply chain data is still often found in isolated places. This discrepancy becomes more and more obvious as the complexity of globalized supply chains grows from linear systems to networks of contract manufacturers and suppliers spanning the world.
Blockchain supply chain offers a solution to this issue by providing immense transparency in regard to product information. Instead of relying on an intermediary for controlling the alterations within these records, blockchains facilitate synchronization across all parties involved with the supply chain – from manufacturers and distributors to warehouse operators and retailers.
With the rise of tech-savvy shoppers wanting more transparency from brands, blockchain technology can help companies meet consumer demands. A 2020 study revealed that an overwhelming 81% of consumers required increased openness from businesses, and 29% were interested in learning about their sustainability practices. Consumers want to understand not only what products are made up of but also where they come from – this is why blockchain provides a valuable solution for both buyers and sellers alike.
By utilizing blockchain to supply consumers with reliable product provenance and transparency data, brands can boost their customers’ trust in them.
Why blockchain technology matters in brand protection and traceability
As products traverse the lengthy journey of manufacturing, processing, packaging and distribution before they reach customers’ hands, Blockchain technology offers game-changing implications for the industry. The current product recall challenges demonstrate that goods can be exposed to serious risk at any stage in this complex chain – from contamination to spoiling or even substitution with something else entirely.
Blockchain technology presents an invaluable resource for maintaining current and accurate records of product origins, thereby enabling supply chain participants to trace the route of each item all the way back to its origin.
Four core use cases for blockchain-based traceability
The potential to revolutionize supply chain management with blockchain technology is enormous. In particular, through its distinguishing attributes, this technology can be effectively utilized in order to improve transparency across four distinct scenarios.
With blockchain technology’s capacity to store each product’s distinct provenance information and generate official certifications, customers gain access to the remarkable “story” of a product. This revolutionary tool gives users unparalleled insight into their purchases – something that was previously unavailable.
The unchangeable and traceability qualities of blockchains guarantee accountability. Every participant in your supply chain has the same copy of the ledger, which prevents unintentional errors or tampering with transaction records.
This is particularly important in the second-hand marketplace as it provides reliable information that makes buyers more familiar and comfortable with purchasing products from you. This gives them assurance when it comes to continuing their trading activities with you.
Verify product authenticity
Traceable products offer buyers and sellers the ability to authenticate their origin and legitimacy with incredible ease. Blockchain, along with serialization and digital tagging such as smart packaging, can assist in preempting product manipulation. An illustration of this could be a track and trace system pharmaceutical, which could generate a unique ID for each item and thusly allow for the validation of their origin, composition and expiration date.
Counteract grey market
Blockchain technology provides businesses with an immutable, secure registry that may be distributed across the supply chain. It stores comprehensive product information such as items, sales history, and secondary market activities. As a result, it can become an option for grey market solutions. What’s more, is that it incorporates features like tracking ownership and command of goods to ensure trustworthiness within their supply chains – bringing about consensus among entities before any alteration can occur or disputes arise.
In conclusion, blockchain technology is transforming the way supply chains operate, providing immense transparency in product information and improving brand protection and traceability. It offers a solution to the isolation of supply chain data and enables synchronization across all parties involved, from manufacturers to retailers. With the rise of consumers demanding increased transparency and sustainability practices from businesses, blockchain technology can help companies meet these demands and build trust with their customers. Moreover, blockchain technology has four core use cases for improving transparency across different scenarios, including product provenance, traceability, product authenticity verification, and countering the grey market. By leveraging blockchain technology in their supply chains, businesses can revolutionize the industry and provide customers with reliable product information and assurances.